Part 11

Question 1

Actual age

Answer 1

the number of years that have elapsed since construction of an improvement was completed. Historical age.

Question 2

Depreciation

Answer 2

in appraisal, a loss in property value from any cause

Question 3

Economic life

Answer 3

this is a period over which improvements to real property contribute to property value

Question 4

Effective age

Answer 4

the age of property that is base on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. What is looks like.

Question 5

External obsolescence

Answer 5

this type of depreciation comes from outside the boundaries of the property

Question 6

Functional obsolescence

Answer 6

the impairment of functional capacity attributed to a particular property according to market tastes and standards

Question 7

Physical deterioration

Answer 7

this is the slow destruction of the structural component that goes on every day, from the moment a building is completed

Question 8

Remaining economic life

Answer 8

this is the estimated period over which existing improvements are expected to contribute economically to a property

Question 9

Construction Classifications (4)

Answer 9

1. Class A Construction – High rise
2. Class C Classification – low rise
3. Class D Classification – multifamily – wood frame
4. Class F Classification - Steel warehouse

Question 10

Basic components of depreciation

Answer 10

1. Physical deterioration
2. Functional obsolescence
3. External obsolescence